Intro to Franchising (B/W)
An Introduction To Franchising
Download 232.79 Kb. Pdf ko'rish
|
english independent work
- Bu sahifa navigatsiya:
- The UFOC includes information about
- The Franchise Agreement
|
8
An Introduction To Franchising By law, a franchisor cannot offer a franchise until the franchisor has presented the prospective fran- chisee with a Disclosure Document. In fact, 14 states require franchisors to register their UFOCs with the state or to notify them that they will offer franchises before they begin to conduct any franchising activi- ty in the state. The UFOC includes information about: ✔ the franchisor ✔ the company’s key staff ✔ management’s experience in franchise management ✔ franchisor’s bankruptcy and litigation history ✔ initial and ongoing fees involved in opening and running the franchise ✔ required investment and purchases ✔ territory rights ✔ responsibilities of the franchisor and franchisee ✔ other franchisees in the system with contact information Receipt of the UFOC is governed by the “ten-day rule.” This is a cooling-off period in which fran- chisors must give prospective franchisees 10 business days to think about their decision before they are allowed to sign the franchise agreement. The Franchise Agreement The franchise agreement is more specific than the UFOC about the terms of the relationship between the franchisor and franchisee. A typical franchise agreement may include specifics about: ✔ the franchise system, such as use of trademarks and products ✔ territory ✔ rights and obligations of the parties: standards, procedures, training, assistance, advertising, etc. ✔ term (duration) of the franchise ✔ payments made by the franchisee to the franchisor ✔ termination and/or the right to transfer the franchise The franchise agreement is the legal, written document that governs the relationship and specifies the terms of the franchise purchase. Like the UFOC, the franchise agreement also enjoys a “cooling off” period. Prospective fran- chisees are legally entitled to have the final franchise agreement for at least 5 business days before they are allowed to sign. This gives them time to review and consider the terms of the agreement. THE IFA EDUCATIONAL FOUNDATION Download 232.79 Kb. Do'stlaringiz bilan baham: 
|